MUMBAI: Tata Steel has code-named the sale process of its UK operations as 'Operation Pluto', according to two people familiar with the matter, as the steel maker urgently looks for a buyer amid continuous losses and poor demand in its UK business.

'Operation Pluto' was launched in the first week of April after Tata Steel decided to put its entire UK operations on the block, giving up on efforts to revive the business it bought as part of the takeover of Corus at the peak of the commodity boom in 2007.

Corus Group was code-named 'Project Colour' almost ten years back when Tata Steel launched an aggressive bidding war with Brazilian steelmaker Companhia Siderurgica Nacional (CSN).

Global consultancy KPMG is heading 'Operation Pluto' along with new UK CEO Bimlendra Jha. The UK government and labour unions too are actively engaged in 'Operation Pluto' to avoid any job losses.

One of the most important elements of the sale process apart from seeking a buyer is the separation of employees, assets, customers, products, contractual liabilities and intellectual property rights between the UK and Netherlands business. Even though both the businesses are separate legal entities, they share many common linkages.

Tata Steel's Netherlands unit is a profitable business and it is not up for sale even though it would likely attract plenty of potential buyers. But the steelmaker's UK unit has suffered almost a decade of losses amid poor demand and cheap Chinese imports. The company has made it clear that it wants to complete the sale process in a 'time-bound' manner given the severity of the funding requirement in the foreseeable future.

A team of 6 comprising people from supply chain, sales, customer services, marketing and distribution backgrounds has been formed under the new UK CEO Bimlendra Jha to run the operations until the eventual sale, according to people aware of the matter. The team will assist KPMG in answering questions raised by potential buyers.

It has already entered an agreement with Greybull Capital to sell its long products business on April 11. Now Tata Steel UK is left with strip business in Port Talbot, specialised steelmaking business in Rotherham, Stocksbridge and some downstream units.

Until now Sanjeev Gupta's Liberty House and Port Talbot management have shown interest in Port Talbot assets. The company has reached out to 190 potential financial and industrial investors for the sale.

Tata Steel declined to comment, saying it was not giving a running media commentary on the sale process.

Tata Steel has extended the deadline of April 29 to submit the Letter of Intent for short-listing potential bidders by a few days, according to a person in the know. Tata Steel UK's huge pension liability and the high cost of doing business in UK are keeping off many bidders.

The UK government is doing its best to attract more buyers for the business. It is ready to buy a minority stake of as much as 25% in Tata Steel's UK business to support the sale and offer hundreds of millions of pounds in debt relief.